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The city has quietly settled its side of a lawsuit brought by a woman and her family who sued for negligence over an accident in a building owned by the wife of former city councillor Fred Dominelli.

Gloria Musselman of Cambridge, Ont., along with her husband, children and grandchildren, were suing the city, the numbered company that operated Cities Bistro, the restaurant's manager, Ida Dominelli, and the previous owners of the building who sold it to Ms. Dominelli. The lawsuit claimed damages of $10.8-million and alleged Ms. Musselman was left a quadriplegic after falling down stairs at the restaurant.

Lawyers for the other defendants in the lawsuit were informed last week that the city had settled, but were not told what the terms were, Ms. Dominelli's lawyer, Louis Frapporti, said yesterday.

The settlement could cost the cash-strapped city millions of dollars. Since he believes the amount of the settlement will materially affect his client's position in a trial slated to start on Sept. 10, Mr. Frapporti will seek to have its terms made public when the case file is amended to reflect the recent agreement, he said.

According to a statement of claim filed with Ontario Superior Court in Kitchener on Feb. 10, 2004, Ms. Musselman, then 71, fell while climbing the stairs after going to a basement washroom in Cities Bistro, in the Dominelli-owned building at 859 Queen St. W., and broke her neck, which left her a quadriplegic.

The previous owners of the building sold it to Ms. Dominelli on Nov. 27, 1979, according to land registry records.

The statement alleges that Ms. Musselman lost her balance "due to the unreasonable height between risers, the unsafe slippery condition of the stairs and the poor lighting above the stairs," conditions that were allegedly caused by the negligence of the various defendants.

In their statements of defence, the defendants argued that Ms. Musselman used the washroom without incident on prior visits to Cities Bistro and that she may have contributed to the accident in a number of ways, including undue haste, improper footwear, improper eyewear or being under the influence of alcohol or medication.

None of the allegations in the claim or defence have been tried in court.

While Ms. Dominelli owned the building, restaurant manager Brian Heasman says in his court statement that it was former councillor Fred Dominelli who executed a Dec. 20, 1999, lease that required Cities to make any repairs ordered by the landlord.

"During the tenancy, Mr. Dominelli attended at the premises regularly, and at no time did he give Cities any oral or written notice of required repairs," Mr. Heasman's statement of defence says.

Mr. Dominelli, a wealthy businessman who owns several properties in the western part of downtown, was appointed to city council on May 22, 2003, to complete the term of long-time councillor Betty Disero.

Mr. Dominelli, who has close political ties to deputy mayor Joe Pantalone, did not run in the 2003 municipal election. Last November, he ran third in Ward 17 to incumbent Cesar Palacio.

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